Question

Disposal of net profit deal with .............. section and rule of the KCS Act and Rules.

• A. Section 56 & Rule 53
• B. Section 53 & Rule 56
• C. Section 54 & Rule 56
• D. Section 56 & Rule 54

Answer 1

Answer:

A. Section 56 & Rule 53

PROPERTIES AND FUND OF CO-OPERATIVE SOCIETY

Chapter VII, KCS Act (Sec 55 - 62)

Section : 55

• Funds not be divided 

• No part of funds other than net profit shall be distributed among members.

Section : 56

• Disposal of Net Profit

• Net profit shall be divided in the Following manner. 

Sec : 56A

• Disposal of Non Banking Asset

• Disposed within 7 years from the date of acquisition with the prior sanction of General body and registrar.

Sec 57: Investment of Funds

Sec 58: Restriction On Borrowings

Sec 59: Restrictions on Loan

Sec 60 (Rule 57):

• Restriction on other Transactions with non member